Chicago Bridge & Iron
Argus started Chicago Bridge & Iron Co. N.V. (NYSE: CBI) as Buy with a $43 price target at on December 7. The prior closing price was just $33.38. This company was also one of the more recent projected Trump infrastructure winners, and its shares have a 52-week trading range of $26.12 to $41.33. The consensus price target was $36.00 ahead of the call.
The stock was at $32.10 the prior Friday, making this Friday’s 2.1% gain to $35.50 a gain of 10.6%.
On December 6, Oppenheimer raised Pandora Media Inc. (NYSE: P) to Outperform from Perform with an $18 price target. What matters here is that Pandora actually may be an acquisition target in 2017. Its shares were up 3.5% at $13.85 around Tuesday’s call, but the $13.81 closing price on Friday is up over 20% from when buyout chatter surfaced in the prior week.
Pandora has a 52-week range of $7.10 to $16.23. The consensus price target is almost $14.50 now. If Oppenheimer is right, then Pandora could rise another 30% — just don’t forget that this company has not been able to make that massive leap into earnings as a standalone company and on its own merits.
United States Steel Corp. (NYSE: X) was maintained as one of the top five steel picks at Deutsche Bank this week, but what stood out was that its target price was raised to $40 from $24 in the call. The company has been among the major U.S. infrastructure and Trump winners since the election.
Closing down 3.5% at $36.06 on Friday might just be a gift, as it was still up 7.2% for the week — and it is up 72% since Trump made such aspirational infrastructure promises in his election speech. The consensus target price is closer to $26 now.
Carrizo Oil & Gas
Carrizo Oil & Gas Inc. (NASDAQ: CRZO) is featured near the end here because it is a smaller oil and gas player than most. Still, Raymond James started Carrizo with a Strong Buy rating and assigned a $60 price target. This compared with a $40.65 prior closing price that implied close to 50% upside if the firm was right.
Carrizo closed out the week at $40.28, in a 52-week range of $16.10 to $43.96, and it has a consensus analyst target of $47.12. This Houston-based shale exploration and production outfit has plays in the Eagle Ford Shale, Delaware Basin, Utica Shale, Niobrara Shale and the Marcellus Shale.
This one is so small that we wanted to feature it last. Still, one analyst call is now expects Plug Power Corp. (NASDAQ: PLUG) shares to double. It was started as Buy with a $3 price target at Rodman & Renshaw on December 5, versus a $1.47 prior close. The call was largely ignored, as its shares closed at $1.43 on Friday due to a 6.5% drop on the day.
Plug Power has a 52-week range of $1.18 to $2.35 and a mere $260 million market cap. The shares hit a post-call high of $1.60 this past week. What should stand out is that Trump’s energy focus has been away from alternative energy, and Plug Power is an alternative energy technology provider of fuel cell systems for the material handling and stationary power markets.
As a reminder, it is not normal for a market run of the magnitude we have seen since Trump won the election. It is very possible that some of the late-year gains of 2016 are eating well into what would have been the gains of 2017. Still, 24/7 Wall St. identified 11 Dow stocks that will be needed to rise to get the Dow to 22,000 in 2017 or beyond.
Other key research notes and groupings from the week of December 9 were seen as follows:
- Seven companies that destroyed shareholders.
- SunTrust’s contrarian and infrastructure Trump stock winners for 2017.
- JPMorgan’s top Permian Basin stock winners.
- Merrill Lynch gets more aggressive on five top airline stocks.
- Jefferies sees four solid banks with more room to run higher.
- Analysts keep raising oil and gas stocks after OPEC announced production cuts.
- Four top dividends that can survive rising interest rates.